Vauxhall fury at 'Judas' chief

The chairman of Vauxhall Motors confronted 400 furious workers who downed tools and laid siege to the company headquarters in Luton. Flanked by security guards, Nick Reilly attempted to pacify workers who massed outside Griffin House in protest at 2,000 job losses, which unions say may total 12,000 in the wider components industry.

Mr Reilly was accused of breaking a pledge that Vauxhall would guarantee work at Luton until 2008. As he tried to justify the company's position, his speech was punctuated by hostile shouts of 'Judas' and 'We want Reilly out'. Workers shouted: 'Losing your job, are you?' He replied: 'I understand entirely your feelings. I know you are angry, upset and shocked. I am also shocked and upset. We had planned to tell you yesterday afternoon but there was a leak. I don't know where that came from.'

He promised 1,000 jobs at the IBC van plant and said the new medium-sized van would be built at Luton for 15 years. But his offer was met with jeers as workers asked what would happen to the rest of them.

Mr Reilly, who two years ago gave up £165,000 bonuses to clinch a pay deal with unions, said: 'When we found this decision was likely, I went to try and mitigate the effect . We have some ability to offer jobs. The losses will not happen until the first quarter of 2002. There is a separation plan being offered to those people who wish to leave early through retirement or separation from IBC, which will result in more jobs becoming available.'

The chairman confirmed that at the time of the agreement two years ago the Bedfordshire plant was expected to attract the new Vectra project. But he pointed out: 'The agreement says that would be the intention unless there were major changes in the car industry. There have been huge changes in the car industry.'

Mr Reilly maintained that the Frontera production facility will stay until 2004 and that cuts are also taking place in Germany. He added: 'We are meeting with your unions to discuss the agreement. I have not washed my hands of you.'

After 20 minutes, he returned to Griffin House saying he could not answer any more questions. The workers trudged back to the factory.

Shop steward Greg Morris said: 'Nothing he said made a difference to me. Where are we meant to go from here? He's had ample opportunity to tell us what was going on but didn't. We deserve more from the company after the effort we have put in.'

Tony Woodley of the TGWU claimed a local government study in Bedfordshire showed up to 12,000 workers will lose their jobs, including those in component supply organisations.

Because parent company General Motors had failed to consult the European Works Council - a consultative body established by the EU - its decision to wind down the plant was 'totally illegal', claimed Mr Woodley.

As workers met Mr Reilly, members of the unions' joint negotiating committee were preparing to enter the HQ to plan their opposition strategy. This will be followed by a top-level meeting between TGWU general secretary Bill Morris and, it is believed, Mr Reilly.

Mr Morris called on General Motors to reverse its decision. 'This global crisis calls for a global solution,' he said. He claimed Luton workers had been picked on because they were easier to sack, despite exceeding all productivity targets.

Meanwhile, Trade and Industry Secretary Stephen Byers pledged a package of financial aid, expected to be aimed at helping workers who want to start their own businesses or need to retrain.

Staff said they felt betrayed by General Motors, which had promised the new Vectra replacement, Epsilon, would be built there.

It is understood that the workers who will be forced out have been offered relocation to Vauxhall's plant at Ellesmere Port on Merseyside.

Redundancy packages amounting to two years' pay for 15 years' service are being talked about. But staff with fewer than 15 years are expecting only one week's pay per year.

Workers also suspect Vauxhall timed the announcement to fall just before a four-week plant shutdown, a spokesman for the Manufacturing, Science and Finance Union said. 'Workers think the timing was basically so they could do nothing about it.'

Alex Brummer: Luton closure is a case of too many cars, too few buyers